SOCB42H3 Lecture : Lecture 3
Document Summary
Midterm: saturday november 6, 2010 @ 9-11 am rooms. Bv340, 355 and 363: money and markets, distribution of wealth. Smith- it facilitates exchange; makes trade work better. Money = whatever anyone will accept in a trade. Bartering is not efficient (limited use) because what you have the other person may not want/need. Abstract quality that allows to meet a function. Salt, cigarettes, gold, livestock were used as currency. It lasts (salt dissolves in rain, cows dies, etc) Divisible (can only trade a whole cow. This is why metal is best for money) Metal serves the function of money very well (functionalist theory must work, serve purpose) Use value: value you get out of using something (walk with cows, milk cows, hamburgers) Exchange value: value you get from trading, selling an object. When the two diverge, they control the market and economy (supply and demand)
